The government’s ambitious central KYC (CKYC) has gone live from July 15. This means that a single bank KYC will suffice to invest in all financial products, including mutual funds. This was announced in the Union Budget 2012-13.
Here’s a quick guide on how intuitions can use this platform.
What is central KYC Registry?
This agency keeps KYC records of all customers in the financial sector which can be used by intuitions like mutual funds, stock brokers, insurance firms, banks and SEBI registered Investment Advisers to verify and download KYC data.
Is there any timeline for institutions to upload KYC data on this platform?
Yes, financial intuitions need to upload digital copies of client KYC data on this platform within three days after they onboard a client.
How CKYC helps intuitions?
Since the records are stored digitally, it helps intuitions de-duplicate data so that they don’t need do KYC of customers multiple times. It helps instuitions find out if the client is KYC compliant based on Aadhaar, PAN and other identity proofs. If the KYC details are updated on this platform by one entity, all other institutions get a real time update. Thus, the platform helps firms cut down costs substantially by avoiding multiplicity of registration and data upkeep.
How will the data be de-duplicated?
The KYC data uploaded on the platform will be de-duplicated on the basis of the demographics (customer name, maiden name, gender, date of birth, mothers name, father/spouse name, addresses, mobile number, email id, etc.)
Can the Central KYC Registry capture multiple communication addresses?
Yes. Central KYC Registry will enable linkage of multiple communication addresses. Individual investors and entities wanting to maintain different addresses, office or residential, for different types of relationships, can fill up a form and submit the details to the financial institution which in turn will initiate the update request on the Central KYC application.
Where can financial intuitions register on this platform?
They can register on https://www.ckycindia.in.
What documents are required to be uploaded on CKYC platform?
Institutions need to upload the common KYC template along with the scanned copy of the certified supporting documents (PoI/PoA), cropped signature and photograph. Click here to download the common KYC template for individuals. Click here to get the manual which provides step by step guide on using this platform.
Are there any charges for using CKYC platform?
Yes, instuitions have to pay an advance fee to Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI). The requisite fee is deducted from this advance payment depending on the usage. Here is the fee structure for various transactions – upload: Rs. 0.80, download: Rs. 1.10, update: Rs. 1.15 per transaction.
